Microsoft and Game publishers will get a cut of Xbox One used game sales

Posted by Tiberius Jonez
email at tiberiusjonez@gmail.com
Twitter: TiberiusJonez@GameJonez


I speculated a while back that this coming generation of consoles would be the last, and that the way games will be sold in the future will eliminate retailers like Gamestop, who rely on the fat profit margins they reap on used game sales, virtually overnight. The first step in that direction was confirmed today when it was revealed that Microsoft and game publishers will get a cut of all Xbox One used game sales.

 According to MCV, Xbox One used game sales will be permitted but retailers who choose to sell them will need to use Microsoft’s Azure-based cloud system to do so. This will ensure that Microsoft and game publishers get a percentage of the used game sale rather than having the entire sale go to retailers like GameStop, as is now the case.

Here's how it will work. Consumers will bring their used game(s) into a retailer and trade it in for cash or credit just like they do now. The retailer will then enter it into their Azure system and wipe the game from the seller’s Xbox One Live profile. Retailers will be permitted to set used game prices, within reason, with the eventual sale divided three ways based on a (presently unknown) split percentage determined by Microsoft.

Rumors are flying that the percentage to retailers may be as low as 10%, which could effectively kill used game sales due to the fact that retailers would have very little incentive to go through all the work required to sell used games for such a small profit margin.

It has long been suspected that, at some point, developers and publishers might disallow used game sales altogether, but Microsoft is the first to come up with what appears to be a viable alternative to an outright ban. The move is a very shrewd one as it is sure to draw more developers to Microsoft's new console. Surely, some of those developers will become Microsoft exclusives. I suspect it won't be long before Sony and  Nintendo follow suit.

Microsoft's Major Nelson posted a response to rumors on his website essentially revealing nothing other than "Microsoft supports the sale of used games" and that more information will be coming soon. Not incidentally, Gamestop's stock dropped 5% in early reaction to the news.

PS3 Slim is a game changer?

by Tiberius Jonez

The worst kept secret in gaming is now officially outed. Sony announced the PS3 Slim to day; a smaller, lighter, more efficient and cooler PS3 with all the same features as it's predecessor. Using a third less power is a good thing, let's hope they improved the blu ray drive's reliability.

Does a smaller box and a much needed price drop make this a game changer for Sony? I doubt it. It certainly will boost sales this year, especially during the all-important holiday shopping season.

Microsoft needs to get Project Natal named and released sooner rather than later. From what I've read and seen, Natal is legit and if used properly, it could render the Wii obsolete overnight; at least in the minds of those gamers falling into the "XBox or PS3 for sure, and a Wii if it was a gift" crowd.

Blu Ray is becoming less of a draw for Sony as standalone Blu Ray players continue to come down in price. There have been no announcements of release dates for any Natal titles but all indications point towards a late 2010 release - holidays 2010?

If that is the case, Sony needs this year to prove most fruitful for PS3 sales. They could fuel that success by releasing more games designed to draw on the 360's success like Mag and Infamous.

I've been pondering a new PS3. This makes it more likely I'll have it sooner rather than later. I am super excited about Project Natal and a slew of good games coming to stores over the next 12 months. Next up, Forza Motorsports 3 and Modern Warfare 2.

This next year is going to be a good one for gamers everywhere.

Ethical bankruptcy = financial bankruptcy

"Because Television can make so much money doing its worst, it often cannot afford to do its best."
-Fred Friendly

Substitute the word 'television' with 'internet', and the above quote seems almost prophetic. Those were the words of Fred Friendly, the producer of See It Now, CBS's landmark news show, which was hosted by Friendly's longtime partner, the iconic Edward R. Murrow. As documented in the excellent film, "Good night and good luck", Murrow and Friendly used a series of See It Now shows in 1954 to shed light on the underhanded tactics of Senator Joseph McCarthy who, at the time, was using his political office to persecute innocent citizens under the guise of halting the spread of communism.

While there is little doubt the power of TV played a vital role in those events, it would have been useless without the courage and resolve of Murrow and Friendly. Despite repeated attempts by McCarthy and opposition members of the press to paint them as communist sympathizers and faced with the possible destruction of their careers, they never wavered in their shared belief that they were acting for the public good.

That was fifty years ago, but the lessons are just as relevant today.

For the past several days the internet has been buzzing over the latest example of ethics being sacrificed for profit. Gamespot, a well-respected source of video game news and information, fired their popular editorial director and employee of eleven years, Jeff Gerstmann, allegedly as a result of pressure from game developer Eidos, a large buyer of Gamespot advertising space. Gerstmann had recently reviewed Eidos's latest release, Kane and Lynch: Dead Men, giving it a decidedly negative score of 6 out of 10.

Since you're reading this blog and not living under a rock, you are probably aware of this story and have likely chosen a side by now -- believing either that Gerstmann was unjustly sacrificed on the altar of corporate profits, or that Gamespot and their parent company, CNET Networks, were within their rights to fire an employee who jeopardized an important advertiser relationship, potentially costing the company hundreds of thousands or even millions of dollars.

To clarify, I'm not comparing the social impact of reviewing a video game to that of preserving the Constitution. I also have no interest in proving or disproving the accuracy of the allegations against Gamespot. The fact is, true or not, this incident is a black eye for the entire business of gaming journalism. I am more interested in where we go from here.

"With great power there must also come - great responsibility."
-Stan Lee

As a medium, the internet is approaching a crossroads. In fact, it may have already barreled through it. As a tool for generating profit, the internet's been around for less than 20 years, but with recent acquisitions of companies like YouTube, MySpace and others commanding prices approaching $1 BILLION, the power of the internet to shape public opinion, create buying trends and influence corporate decision-making, is quickly approaching that of television. But it's still just a tool, and like Friendly and Murrow half a century ago, it is our courage and resolve that will determine the internet's impact on society.

Unlike websites that focus purely on entertainment content, journalistic outlets are tasked with balancing advertiser needs with fair and objective reporting, all the while producing compelling content that will attract and maintain high levels of readership.

Most video game outlets only make money because readers trust us to be unbiased sources of information. They count on us to help them avoid wasting time and money on bad games. If readers believe the opinions of game reviewers are no more than thinly veiled marketing campaigns dictated by game developers, that trust will be lost and those readers will leave en masse, taking all those advertising dollars with them.

As far as I'm concerned, if we betray the trust of our readers just to make an easy buck, then we deserve our inevitable fate...extinction.

'Krazy' Ken Kutaragi to be honored with AIAS Lifetime Achievment Award

The Academy of Interactive Arts & Sciences has chosen 'Krazy' Ken Kutaragi as the recipient of the 2008 Lifetime Achievement Award. The award will be presented at this year's Interactive Achievement Awards on February 7th at the Red Rock Hotel & Casino in Las Vegas, in conjunction with next year's D.I.C.E. Summit. Regarded as the father of that fad known as the PlayStation, Kutaragi was squeezed out of the Sony hierarchy this past Spring after the PlayStation 3's sluggish start.

Kutaragi's unpleasant departure from Sony in no way diminishes his impact on the business of video games. In fact, it would be difficult to imagine the modern gaming landscape without his very significant contributions. The former Sony Computer Entertainment Inc. President and CEO was instrumental in the creation and launch of the PlayStation brand, and that alone cements his place in the history of the industry. Besides, if nothing else, we are all but guaranteed at least one good quote between now and the award ceremony.

DVR Alert! - Discovery presents "Rise of the Video Game"

When I'm not busy reading about video games, or writing about video games, or discussing the merits of video games, I like to watch stuff about video games. That's where The Discovery Channel comes in. Beginning November 21, they will be airing a five part series on the "Rise of the Video Game"


I enjoy the Discovery Channel, and this will be a unique chance to see my favorite subject covered on their airwaves. The first episode in the five-hour long mini-series, which delves into the game industry's history and its significant contributors, airs Wednesday, Nov. 21 at 8PM, with subsequent episodes every Wednesday until it is done. On Discovery I've seen a whale rise, a space shuttle rise, a sunrise and the Earth's temperature rise. Now I get to see the 'Video Game' rise. Sweet!!